Product Development expense for existing line of business is revenue expenditure

M/s. Nov Sara India Pvt. Ltd Vs Addl. CIT (ITAT Delhi)

Software development expenditure which was held to be capital expenditure by the Assessing Officer holding that it has given a benefit of enduring nature to the assessee. The claim of the assessee is that same is a license fee and, therefore, it cannot be giving any benefit of enduring nature. The learned CIT (Appeals) held that it was for the development of new products and, therefore, same is a capital expenditure.

The above expenditure is product development expenditure and not software development expenditure. The ab

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